GAAP to Non-GAAP

Non-GAAP Financial Measures
We believe that return on invested capital (“ROIC”) is useful to investors as a measure of operating performance and of the effectiveness of the use of capital in our operations. We use ROIC as one measure to monitor and evaluate operating performance. ROIC is a financial measure that does not reflect generally accepted accounting principles (“GAAP”). We calculate ROIC by dividing net income, excluding after-tax interest expense, by average invested capital. Average invested capital is defined as the aggregate of average interest-bearing debt and average shareholders’ investment and is calculated as the sum of current and prior year-ending amounts divided by two. Investors should consider this non-GAAP financial measure in addition to, not as a substitute for or better than, financial measures prepared in accordance with GAAP. A reconciliation of the components of ROIC to the most directly comparable GAAP financial measures is as follows:
Non-GAAP Financial Measures
We believe that disclosing diluted earnings per share excluding the impact from acquisition-related expenses, restructuring expenses and the higher share count is useful to investors as a measure of operating performance. We use this as one measure to monitor and evaluate operating performance. Diluted earnings per share excluding these items is a financial measure that does not reflect United States Generally Accepted Accounting Principles (GAAP). We calculate this measure by adding back the after-tax effect of the acquisition-related and restructuring expenses to net income and dividing the result by the diluted weighted average shares outstanding. We also reduced the weighted average shares for the portion that was attributable to the equity issuance and calculated the impact of the additional shares by dividing the revised net income by the revised weighted average shares and subtracting the calculated impact from the acquisition-related and restructuring expenses. Investors should consider this non-GAAP financial measure in addition to, not as a substitute for or better than, financial measures prepared in accordance with GAAP.
Non-GAAP Financial Measures